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Que5)Consider a semi-annual bond that has a par value of 100, a 15-year maturity, a 5% coupon rate. Monthly interest rate is 0.412%. a)Do you

Que5)Consider a semi-annual bond that has a par value of 100, a 15-year maturity, a 5% coupon rate. Monthly interest rate is 0.412%.

a)Do you agree with the following statement, and explain why? (5 marks)

If two bonds have the same duration, then the percentage change in price of the two bonds will be the same for a given change in interest rates.

100-150 words

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